June is National Home Ownership Month and while there are always many reasons to buy a home, purchasing a home in the summer can provide some additional benefits. Here are four great reasons to consider buying a home today instead of waiting.
- Prices Will Continue to Rise – Seattle and the Eastside will continue to have double-digit appreciation for the foreseeable future. Example: a $850,000 home with 10% market appreciation will cost $935,000 next year.
- Mortgage Interest Rates are Projected to Increase – Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have increased by half a percentage point already in 2018 to around 4.5%. The Mortgage Bankers Association, Fannie Mae and Freddie Mac are all projecting that rates will increase by nearly a full percentage point by this time next year. An increase in rates will impact your monthly mortgage payment and reduce the price of home you can afford. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5%.
- Either Way, You are Paying a Mortgage – There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s. As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity. Are you ready to put your housing cost to work for you?
- It’s Time to Move on With Your Life – The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. With both being on the rise, look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. Let’s get together to discuss your options and find your dream home!
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